Pittsburgh Bank of Savings

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: July 7, 1913
Location: Pittsburgh, Pennsylvania (40.441, -79.996)

Metadata

Model: gpt-5-mini
Short Digest: 99f2caf2

Response Measures

Accommodated withdrawals

Description

A run on the Pittsburgh Bank of Savings occurred July 7–8, 1913 triggered by the closure/receivership of the First-Second National and related Kuhn institutions. The Savings bank paid small demands (up to $50) immediately and required notice (30/60/90 days) for larger amounts. There is no article evidence the Savings bank suspended or closed permanently.

Events (1)

1. July 7, 1913 Run

Cause: Local Banks
Cause Details: Run was precipitated by the closing/receivership of the First-Second National Bank of Pittsburgh and allied Kuhn institutions.
Measures: Paid depositors up to $50 immediately; required notice of thirty, sixty and ninety days for larger withdrawals; officers (Kuhns) resigned and new officers were elected.
Newspaper Excerpt: During the early hours of the day, run was made on the Pittsburgh Bank of Savings ... demands up to $50 were paid without question and notice for larger amounts was asked, running thirty, sixty and ninety days
Source: newspapers

Newspaper Articles (5)

1. July 7, 1913 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, July 7, 1913

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Article Text

PITTSBURGH BANK COMPELLED TO CLOSE FIRST-SECOND NATIONAL, RE. CENTLY MERGED, IN FINANCIAL DIFFICULTIES. FAILURE FORCES CLOSING OF ALLIED INSTITUTION McKeeeport Bank Carried Down in Crash-Owners of Banks Control Eighty Water Systems Scattered About Country-New Bank Building and Doubtful Collateral Cause. Pittsburgh, July 7.-Differences of long standing with the treasury department concerning the character of assets of the former First National Bank of Pittsburgh, merged with the Second National bank last March, culminated today in the closing of the bank by order by Deputy Comptroller of the Currency T. P. Kane. The Pitsburgh clearing house assoclation has taken charge of the situation and no further trouble is expected. None of the officials of the bank would make a statement this morning, saying affairs were in the hands of the government officials. The First National Bank of McKeesport, an allied institution of the FirstSecond National Bank of Pittsburgh, closed its doors later, posting this notice: "On account of the First-Second National Bank of Pittsburgh asking for a receiver it is thought best for all of our depositors to close this bank for the present." The notice was unsigned. Kuhns Own Controlling Interests. W. S. Kuhn and J. S. Kuhn own the controlling interests in both banks, and their closing led to the asking for a receiver for the American Water Works and Guarantee Company, the largest concern of its kind in the country. with which the Kuhns are identifled. This concern controls over forty water works plants in the United States. Differences between the officials of the First-Second bank and the treasury department over the character of the bank's assets are said to have led to the order closing its doors. No details of the differences have been an: nounced. The bank here has deposits of more : than $30,000,000. The suspension precipitated a run on the Pittsburgh Bank of Savings, of which J. S. Kuhn is president. Water Companies Involved. Attorneys this afternoon appeared before Judge J. P. Poor, in the federal court. and asked for receivers for the American Water Works and Guarantee Company and also for the firm of J. S. and W. S. Kuhn, incorporated. For the former these were appointed: J. S. Kuhn. W. S. Kuhn, J. H. Purdy, general manager of the company, and Samuel Bailey, Jr., a bank official of this city. For the Kuhn company was appointed J. K. Duff, who was treasurer of the company. Bonds of $50,000 were ordered filed for each receiver.

2. July 8, 1913 Albuquerque Morning Journal Albuquerque, NM

Article from Albuquerque Morning Journal, July 8, 1913

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Article Text

Concerns Them Several Big in and Near City, NO DEPOSITORS TO LOSE, SAY OFFICIALS Investments in Irrigation and Waterworks Enterprises Led to Embarrassment for Ready Money (BY MORNING JOURNAL SPECIAL LEAGED WIRE Pittsburgh, July 7.-The First-Second National Bank of Pittsburgh, the First National Bank of McKeesport, a bank of a neighboring city, the AmerIcan Waterworks and Guarantee company, and the banking house of J. S. and W. S. Kuhn, Inc., of this city, were forced into the hands of receivers today, through the failure of the its first named institution to open doors this morning The closing of the First-Second No tional bank was ordered by the deputy P comptroller of the currency, T. Kane, after every effort had been made to meet the government requirements as to the legal reserve. The Kunn banking house has extensive interests in Irrigation projects throughout the west, and mines and street traction systems throughout western Pennsylvania, besides being a dominant factor in the American Waterworks and Guarantee company. W. S. Kuhn was president of the First-Second National bank vice president and director in the banking house. and vice president and director of the American Waterworks and a Guarantee company. besides being director of the McKeesport bank. J.S. Kuhn was a director of the First-Second National bank, president and director of the American Water works and Guarantee company. president and director of the McKeesport bank and chairman of the board of directors of the banking house When it was learned that the banks would have to suspend business, steps were taken to protect the American Waterworks and Guarantee company, and the Kuhns' banking house, and application was made in the federal court this afternoon for receivers for both institutions Throughout the day a statement of the banks and effected companies affairs was awaited with feverish anx lety, but none was forthcoming until tonight. when Mr Kane mad a for the mal statement. No statement of condition of the bank was obtainable subsequent to the one issued June 4 on the last bank call of the comptrol ler. Tonight, Mr. Kane issued the following: "At a meeting of the directors of First-Second National bank held on Sunday, the condition of the bank and the results of the recent invest gation of the bank examiner were dis cussed After full consideration the directors declared their inability to make good the bank's impaired cap. Ital and without dissent decided that it would be best for the protection of depositors and all other interests to have the comptroller of the currency take charge and to arrange for th liquidation of the bank "The Pittsburgh clearing house committee, which has been engaged for the last four days In going over the affairs of the bank with the ex1 aminers and in making n cireful estigation as to 11s condition, refused o furnish funds maffident to institu the bank in keeping its door open and agreed under the circumstances there was no alternative to the cours recommended by the bank's directors The officers of the bank have expressed to the department the belief that there will ultimately be but little if any loss to the Lank's depositors The liquidation of the bank. and the Distribution of its assets will proceed is expeditiously as possible," After a protracted meeting of the Pittsburgh clearing house association his institution tonight issued this statement: "The closing of the First-Second National bank by the deputy comproller of the currency, was not entirely unexpected by this association nd it was therefore prepared for the risis. The members of the clearing house are all in good condition and ve believe that the banks and trust companies in the city of Pittsburgh, is a whole, are prepared for any emergency. It will take several days o arrange for the transfer of accounts and the proper and careful handling of checks made upon the First-Second National bank. We herefore ask the indulgence of the public and request that they will help in every way possible to assist in the solution of the problem which confronts the clearing house commitee and the banks. During the arly hours of the day, run was made on the Pittsburgh Bank of Savings, another Kuhn instiution, because of the climax in the ffairs of the First-Second National. 11 demands up to $50 were paid ithout question and notice for largr amounts was asked, running thir: sixty and ninety days, according 0 the amount demanded by the de-

3. July 8, 1913 Albuquerque Evening Herald Albuquerque, NM

Article from Albuquerque Evening Herald, July 8, 1913

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Article Text

FINANCIAL CIRCLES SHOW LITTLE EFFECT OF CRASH (By Leased Wire to awaring Herald. Pittsburgh, July 8.-Finnelal Pittsburgh showed little outward evidence today of yesterday's crash in banking circles involving the failure of the First-Second National with $32,000,000 of deposits, the First National bank of McKeesport, an allied institution, and the appointment of receivers for the American Waterworks and Guarantee Co., the largest concern of its kind in the country and for the banking house of J. S. and W. S. Kuhn, Inc. Nothing unusual was observed about the other banks of the city except the Pittsburgh Bank of Savings, another bank controlled by J. S. and W. S. Kuhn, who controlled the majority of stock In the wo banks that suspended yesterdday. The run on the Savings institution that was started by the failures yesterday was resumed today but the same method as adopted yesterday was persued today. All depositors were paid $50 at once and notice of thirty, sixty and ninety days for largor amounts were required. J. S. and W. 8. Kuhn today resigned as president and vice president of the Pittsburgh Bank of Savings. The following officers were elected: W. J. Jones, president: L. M. Plummer, vice president: A. N. Voegtiey, secretary and treasurer.

4. July 8, 1913 The Chronicle=news Trinidad, CO

Article from The Chronicle=news, July 8, 1913

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PITTSBURGH FLURRY SUBSIDES Pittsburgh, Pa.. July 8.-Pittsburgh's one day flurry in financial circles caused by the bank failures of yesterday apparently was a malter of history at noon today. The the First-Second and the bank failure of of Pittsburgh First national naof McKeesport with receiverships for o sequent tional the the Ameri- com- subcan Waterworks and Guarantee pany and the banking firm of J. S. d and W. S. Kuhn company who were s dominant factors in the former in stitutions. established by noon t today would here no deleterious of 1. feet upon other financial instituo tions. The run on the Pittsburgh for savC Ings. N Kuhn Institution which star ted yesterday. seemed to abate ahortly after the announcement that .1. 8. and W. S. Kuhn had resigned from the presidency and vice presidency : of the bank. e Contemplated meetings of the : clearing house association were called off about midday when It definN Itely decided that all its member's banks were in destrable condition. K and in need of no assistance which o If required was forthcoming from o New York. Chicago and St. Louis o In the United States district court : today Judke Charles P. Orr appointR ed Frad G. Kay as the fourth receiv: er for the American Waterworks and N Guaranter company. W. J. Jones formerly treasurer of the Pittsburgh bank for savings. bu: : today made president of the institu. o tion. maid after his election: d The Kuhna have entirely with drawn form the bank As it was they were only the nominal heads of the organization. There is no question about our d bank. We are backed by many of y. the Pittsburgh banks and we have the support of the clearing house. Pittsburgh. Pa., July -Financial Pittsburgh showed little outward evidence today of yesterday's crash et circles involving the IN First-Second are in banking of the National fail ⑆ Bank with $32,000,000 of deposits. the First National Bank of McKen et allied Institution. and the to of receivers appointment port. an Guarantes for the American Waterworks et company. the largest concern of Its TM kind in the country. and for the to banking house of J. 8. and W. S Kuhn. Incorporated Nothing unusual was observed about other banks of the city except she Pittsburgh Bank of Savings. an dother bank controlled by J. S. and et W. 8. Kuhn. who controlled the me1. Jority of stock in the two banks that " yesterday as institution suspended the Savings The that run was on he the failures yesterday was pt but the same renumed started by today method to as adopted yesterday was pursued he day All depositors were paid $50 as of once and notice of 20. GO and 90 in days for larger amounts were re c. quired. x. IC J. S. and W 8. Kuhn today re1. signed as president and vice presi⑉ dent of the Pittsburgh Bank of Say TC Ingr The following officers were elected: " w 8. Jones. president 1. M n vice president: A. Vock! Plumer. N. ley. secretary and treasurer The treasury department yester day offered the solvent Pittsburg" banks $5,000,000 of government de he posits to meet any emergency. but n. the offer was declined because the e. banks were in a position to meet the situation as he The entire capital and surplus of d. the First. Second bank. amounting to re $5,500,000. has probably been wiped of out but officers of the bank have assured the government that depos Id iters will be paid in full or nearly din full. ke of McKeesport. Pa. July S The ⑉ First National Bank of McKeesport controlled by J. S. and W. S. Kuhn.

5. July 11, 1913 Putnam Patriot Putnam, CT

Article from Putnam Patriot, July 11, 1913

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Article Text

BANK COLLAPSE IN PITTSBURGH Closing of First-Second National Leaves Situation Sound ONE SORE SPOT IS GONE Receivers Asked for Other Kuhn Companies-More Than $100,000,000 Involved in Crash of Pennsylvania Institution and Subsidiaries. Pittsburgh.-What appears to be the most gigantic bank crash since the panie of 1907 occurred here when the First-Second National Bank, carrying deposits. of more than $32,000,000 and involving interests valued at approximately $100,000,000 was ordered by the acting controller of the currency to keep its doors closed, pending an investigation by the government. Following the closure of the FirstSecond National came the news that the First National Bank of McKeesport, carrying deposits of $3,439,000 and conducted by the same interests as the Pittsburgh bank, had closed its doors. Later in the day the Amherst Bank Company, at Amherst, Ohio, also controlled by the Pittsburgh interests, was ordered closed by the Ohio authorities. The Amherst institution carried deposits of more than $230,000. The banks are controlled by the great Kuhn interests, which are considered unassailable throughout the Middle West. The failure of the institutions ties up $115,000,000. All the Kuhn interests, representing $200,000,000, are involved in the four receiverships. Hundreds of depositors withdrew their funds from the Pittsburgh Bank of Savings, in which the Kuhn interests are also paramount. W. S. Kuhn and his associates, according to their friends, claim that they made all the sacrifice they could for the welfare of the institution. They charge the present Treasury Department authorities with repudiating what former officials approved only 90 days ago. W. S. Kuhn, who was president of the Second National before the consolidation, became president of the new institution. Mr. Kuhn is one of the organizers of J. S. & W. S. Kuhn, which is the controlling interest in the American Water Works & Guarantee Co. This corporation has a capital of $20,000,000, all of which is outstanding. The water-works corporation controls, directly or through subsidiary companies, plants supplying water wto about 1,250,000 people in eighty cities or towns of the United States; hydro-electric properties in Idaho, irrigation systems, a group of bituminous eoal mines in Pennsylvania that rank third in output in that state, and electric railway and electric light and power systems in Pennsylvania. Altogether the company controls forty corporations with an aggregate capital of $74,000,000.